What are the Types of Money?

Learn what are the main types of money. What is money? Learn about the main types of money including commodity money, representative money, fiat money, and bank money. Also learn why intrinsic value is important.

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@moneyinstructor What are the types of Money? #financialeducation #financialliteracy #howmoneyworks #economics #economics101 #moneytiktok ♬ Monkeys Spinning Monkeys – Kevin MacLeod & Kevin The Monkey

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What is Money? Functions

Learn what is money and what are its functions.

Money is a commodity that has been accepted by all as an economic medium. It is used to express prices and values. As a currency, it circulates anonymously between people and countries, facilitating trade and is the main measure of wealth.

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Money is a store of value.

Money can be thought of as a unit of account.

Money can be used as a medium of exchange.

Money may serve as a standard for deferred payments.



@moneyinstructor What is Money? Functions. #moneytok #financialeducation #financialliteracy #howmoneyworks #economics101 ♬ Monkeys Spinning Monkeys – Kevin MacLeod & Kevin The Monkey

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Emergency Savings Fund. How much Emergency Money should I Save?

Learn how much to save for your emergency fund. Emergency savings are designed to cover unexpected expenses or financial emergencies. You can use emergency savings to pay unexpected bills, small or large, that are not included in your monthly spending and expenses.


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What is an emergency fund? An emergency fund is a cash reserve designed to cover unexpected expenses or financial emergencies. Examples of common emergency situations include home repairs, car repairs, medical bills, and income loss. You can use emergency savings to pay unexpected bills, small or large, that are not included in your monthly spending and expenses. It is important to understand why you need it.

The first thing you should do with your savings is set up an emergency savings fund.  In case you lose your job, try to save six months of your income to ensure you have enough money to pay for essential expenses. Even if you have only three months of income to save, it’s a good start.  Twelve months of savings is even better if you can do it.  If you don’t find yourself in a dire situation, having an emergency fund can be a great way to help cover unexpected expenses.

Companies are always looking for ways to reduce costs which can lead to furloughs or layoffs. In the worst case scenario, it’s essential to have a cushion to supplement or replace your income. It is important to remember that emergency funds must be readily available.   So consider a bank savings account for your emergency funds.



@moneyinstructor How much emergency money should I save? #moneytok #savingmoney #howtosave #financetips #moneytips #emergencymoney #emergencyfund ♬ She Share Story (for Vlog) – 山口夕依


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Why is Everything so Expensive? Inflation

Learn the basics of why everything is so expensive in 2022. Prices going up for food, gas, rent, housing, and other things.  A video short lesson.


@moneyinstructor Why is everything so expensive? Inflation 2022 #money #moneytok #foryou #cartoon #tiktoktaughtme #inflation ♬ original sound – Money Instructor


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The Simple way to Build Wealth

A simple strategy to build wealth, by understanding earning, spending, saving, and investing money. A basic techniques for beginners. Spend less, avoid debt, and achieve your financial goals.




@moneyinstructor A Simple way to Build Wealth 💰😀 #wealth #success #money #motivation #personalfinance #moneytok #cartoon #moneytips #wealth #viral #foryou #fun ♬ original sound – Money Instructor



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Earning, Spending, Saving (and Investing)

Learn about earning, spending, saving, and investing money.  Learn how they are related and how you can build wealth.



Do you have an allowance? Have you done chores and got paid? Do you have a job?  If you have, then you have earned money. Earnings refer to the money you earn from a job. People earn money by having some sort of job. You can work providing a good or service.


Spending is the act of giving money to purchase goods or services. Everybody has to decide what they’ll do with the money that they earn. They will spend it on the things they need or want.  You can’t have everything you want, so you have to make important decisions about the things you spend your money on.


Instead of spending, will you save it? It’s the process of putting aside money for future uses, and not spending it immediately. You can save money to achieve short-term goals, such as saving to buy new clothes, or a gift, or long-term goals such as buying a car, or house. Also, saving money can help you cover unexpected expenses such as medical expenses, or pay for repairs for your car.


Investing is something you can do with the money you save. Its related to saving, but with investing you take bigger risks with your money with the hope that they will increase in value. Investing is the process of buying assets, also called investments, with the hope that they will increase in value over time or provide income payments.  It’s a way to hopefully increase the amount of money you have.


So how is earning, spending, saving, and investing related?    Its all related  to wealth. Saving and investing is about building wealth. We can summarize it all as

WEALTH = what you EARN (work, investments) – what you SPEND.

If you spend more than what you earn, you are in danger of losing wealth and going into debt. If you already have debt, it will grow bigger. By spending less than what you earn, and saving your money, you will create wealth.

Understanding earning, spending, saving, and investing is the foundation of smart personal finance. Mastering these skills is key to mastering money, and achieving your financial goals.



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Tax Deductions for Teachers 2022 | Expenses 2021

Update on the teacher tax deduction for 2022 for 2021 tax year. A teacher’s guide to the educator expense deduction.

Overview of the Educator Expense Deduction

If you are a teacher, generally, you can claim the educator expense deduction if you have paid for classroom supplies and other materials from your own pocket during the tax year. It is an important tax break for teachers. Here is an general overview of the deduction.


Qualifying Criteria

You must meet the following criteria to be eligible for the Educator Expense Deduction:
• You were a teacher, counselor, principal, or aide to students from kindergarten through 12th grades.
• You worked at least 900 hours in a school that is state-certified to offer elementary or secondary education. This is applicable to all public and private schools, as well as religious schools.
• You spent money on qualified educator expenses.


Qualifying Educator Expenses

Here are just a few examples of items that can be deducted for the Educator Expense Deduction
• school supplies
• books
• Computer equipment (webcams and headsets) and software
• Athletic equipment for physical education teachers
• Generally, any item purchased that is suitable for the classroom and useful to students.

Only if you don’t receive reimbursement for classroom expenses, can you deduct them. You cannot deduct classroom expenses if you have received reimbursement from a school, teacher union, parent-teacher association, or another entity for the cost of materials.


COVID-19-related Expenses

The Educator Expense Deduction allows for deductions of

  • personal protective equipment or PPE
  • sanitizers
  • disinfectants
  • other supplies used for the prevention of the spread of coronavirus


Claiming Tax Deductions

Teachers may claim the Educator Expense Deduction, regardless of whether they itemize or take the standard deduction.
* Teachers can deduct up to $250.
* A joint return filed by two married teachers can be deducted up to $250 each, with a maximum amount of $500.

Note: In 2022, the amount will increase from $250 to $300 for single taxpayers.  In 2022, qualifying teachers can claim $300 for expenses paid or incurred for books, supplies, computer equipment (including software and services) and other equipment, and supplementary materials used in the classroom.


Reducing your Educator Expense Deduction

In certain situations, your Educator Expense deduction may need to be reduced. The IRS requires that you subtract the following from the deduction:
• Interest on U.S. savings bond interest that you were eligible to receive tax-free as you used the money for higher education expenses.
• Distributions from 529 Plans that you did not have to declare as taxable income.
• Withdraw tax-free from Coverdell education savings account
• reimbursements you receive for expenses that aren’t reported to you in box 1 of your Form W-2

Keep Track of your Expenses

Keep good records of all classroom expenses to claim your tax-deductible expenses as an educator.
• Keep your receipts separate from your other receipts.
• Record all eligible purchases in an appointment planner or book.

This has been a general overview of the deduction. Be sure to consult your own tax advisor regarding your own situation.

Here is the page in the 1040 instructions.

Adjustments to Income Line 11 Educator Expenses
Adjustments to Income Line 11 Educator Expenses



This material has been prepared for educational and general informational purposes only, and is not intended to provide, and should not be relied on for tax or accounting advice. You should consult your own tax, legal and accounting advisors regarding your own situation.

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I was playing Wordle and this happens…

Do you play Wordle, the viral online word game? Here is a fun class or lesson starter for the TikTok or YouTube generation of students on the topics of money and saving. Discuss with your students the importance of saving money and the problem of having too much debt, especially credit card debt.


@moneymittens I was playing Wordle and this happens… #moneytok ♬ original sound – money mittens


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What is Wordle, and why is it so popular?

Wordle is a web-based puzzle where players must guess a valid five letter word in six attempts or less. The tiles’ colors will change after each guess to indicate how close you were to the word. Everybody is given the same word every day, but after 24 hours the word changes. Millennials are the ones who are most interested in the game.

The game was created in collaboration with Josh Wardle (Wordle refers to his last name). Wardle, a Brooklyn-based software engineer, created the guessing game.  It’s just a fun game.

Where can you play Wordle?

The web-based game Wordle can be played on a desktop browser or mobile device at www.powerlanguage.co.uk/wordle/. The website is simple and does not require complicated sign-ups. Simply go to the website and start playing.

Wordle might seem to be the most popular mobile game at the moment, but it still has some way to go before it can compete with other games, like Candy Crush and Words with Friends. Wordle is still popular and people are talking about it.

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What is the Stock Market? How does it work?

Stock market explained.  Learn and understand the basics of Wall Street and the stock market for beginners.

What is the Stock Market?

The Stock market refers to a group of exchanges that allow stocks and other securities to be bought and sold. The stock market and Wall Street are two terms used in the United States to refer to all aspects of securities trading including stock exchanges that list shares of public companies, or stocks,  and other markets that trade securities.


People often refer to the performance of the stock market by referring to the thousands upon thousands of publicly traded companies that are listed on multiple stock exchanges. The stock market, more broadly speaking, can be understood to include a wide range of securities, including bonds, mutual funds, ETFs, and other securities.

One way to look at the stock market is as a network of stock exchanges, that allow investors and traders to buy and sell shares of publicly traded companies. Stock markets are public markets that allow for the issuing, buying and selling of stocks.

Through an initial public offering (IPO), private companies can list shares of their stock to an exchange. These shares are purchased by investors, which allows the company raise capital from the public and allow it to expand its business. The company becomes a public company once it is listed on a stock market. Investors can now buy or sell shares of the company on an exchange that tracks its stock price.

A functioning stock market is essential for economic development because it allows companies to access capital quickly from the public. The stock market has two important functions .  First, it allows companies to raise capital, or money, from the public. Second, it  gives investors the chance to invest and to own a portion of companies profits.

Although both the stock market and stock exchange are interchangeably used, a stock exchange is a actually component of a larger stock market. When one trades on the stock market, they are buying or selling shares on any of the stock exchanges that make up the overall stock market.  The New York Stock Exchange, or NYSE, and the Nasdaq are the two most important U.S. stock exchanges. The stock market in the United States is made up of these top exchanges and several others.

The New York Stock Exchange (NYSE) is an American stock market located in New York City’s Financial District. It is the largest stock exchange worldwide according to the market capitalization of its listed businesses. There are billions of trades occurring every day. NASDAQ (National Association of Securities Dealers Automated Quotations), an electronic marketplace based out of the United States, focuses on high-tech listings. It ranks second in terms of market capitalization, shares traded, after the New York Stock Exchange.

Stock market investors can purchase ownership stakes from companies to raise capital. These equity stakes are called shares of stock. Companies can list shares to be sold on the stock exchanges that make the stock market. This allows them to access the capital they need to expand and operate their businesses without taking on debt. Companies are required to provide information to shareholders and allow them to have a say in the management of their business.

Exchanging money for stock on the stock exchange is a great way to benefit investors. Investors may reap the potential rewards as stock shares may become more valuable, which leads to capital gains. As their profits increase, companies also pay dividends to shareholders.

Stock markets are important because they help companies raise capital to finance operations through the sale of shares of stock. Individual investors also benefit from it creating and maintaining wealth.




Information is for educational and informational purposes only and is not be interpreted as financial advice. This does not represent a recommendation to buy, sell, or hold any security. Please consult your financial advisor.


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What is the IRS Form 1040? Individual Income Tax Return


What is Form 1040?

Form 1040 is the U.S. Individual Income Tax Return.  It is a federal income tax form that people use to report their income to the IRS and claim tax deductions or credits. It is used to calculate their tax refund and tax bill for the year. You may file your tax return online, with tax software, or you can also download Form 1040 directly from the IRS website if you prefer to complete your return by hand.


The IRS Form 1040 is used by US taxpayers to file their annual income tax returns. Formerly called the US Individual Income Tax Return, Form 1040 requires taxpayers to report their annual taxable income and deductions in order to determine if taxes are owed. If the IRS approves the return, the taxpayer will be entitled to a refund. You may want to attach schedules, which are additional forms depending on what type of income you have.

If your taxes were simple, you could file Form 1040A and Form 1040EZ in the past. These forms were eliminated starting in the 2018 tax year and replaced by a shorter form.  As a result, there are now fewer boxes on Form 1040 than before, as many lines from the older form have been transferred onto additional schedules.

What is on the 1040 Tax Form?

Lets take an overview of what you will find on the 1040 form.

First, it asks you who you are. The top of Form 1040 collects basic information such as your name, address, social security number, your tax-filing status, and how many tax dependents you have.

Next, you calculate your taxable income by adding up all your income for the year. Your taxable income is the amount of income that is subject to income taxes.  Form 1040 is used to report annual income tax returns. You must report income above a certain threshold.

On page two of the 1040 form, you calculate the taxes you owe, your tax liability.  You can subtract any tax credits you may be eligible for and any taxes that you have already paid via withholding from your paychecks throughout the year.

Finally, you will determine your tax bill or refund.  This will tell you whether you have already paid any or all of the tax bill. The Form 1040 can also help you determine whether tax credits or withholding taxes covered your tax bill. You’ll be eligible for a refund if you have overpaid during the year. 

The tax season normally officially starts in February. You should file Form 1040 to the IRS no later than April 15 in a normal year. In some years, such as in 2022, the date is later due to holidays.  You can normally request a six-month extension to file taxes by October 15 (or later if delayed by a holiday) if you require more time.




Money Instructor does not provide tax, financial, legal or accounting advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, financial, legal or accounting advice. You should consult your own tax, financial, legal and accounting advisors regarding your own situation.

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